Gender Performance Indicators: How well are we serving women?

Women’s World Banking Gender Performance Indi-catorsIntroduction

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Gender Performance Indicators: How well are we serving women?


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Table of Contents

i n t ro du c t i on

c l i e n t- c e n t r i c f o c us

Outreach Products Service Quality Client Protection

i n s t i t u t i on a l f o c us

Institutional Composition Institutional Trends

ou t c o m e s

Financial Outcomes Social Outcomes

a ppe n d i c e s & e n dn o t e s

3

5

17

20

27

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If an institution is targeting women, as 74% of microfinance institutions do, then it should be able to measure how well it is serving women. Similarly if an institution’s mission declares a commit-ment to women, then performance should reflect that commitment. Recog-nizing a lack of information beyond basic measures, Women’s World Banking set out to develop an evaluation framework that defines the key metrics that will allow microfinance providers to measure how effectively they are serving women, both internally and externally.

As the only global microfinance network with an explicit commitment to serve women, Women’s World Banking is uniquely positioned to take the lead in developing a comprehensive set of comparable and standardized gender performance indicators. The Gender Performance Initiative launched in 2011 but its development reflects Women’s World Banking’s 30 years of work as the authoritative leader in action research to understand and serve the financial needs of low-income women.

To develop the indicators, Women’s World Banking defined priority areas that women value, based on our extensive qualitative research on women clients. We gathered feedback from experts within and outside the industry and applied lessons learned from social performance tools. Finally, and most importantly, Women’s World Banking tested the indicators for operational practicality and scientific rigor, selecting three pilot sites from among our 39 member institutions: Ujjivan Financial

Services (India), Fundación delamujer (Colombia), and Finance Trust (Uganda). The final set of indicators give the microfinance industry a first-of-its-kind, comprehensive tool to track—and improve—gender performance.

This manual presents the final indicators and tips on their implementation within institutions that serve the poor, including some notable findings from our initial testing and analysis. It is a tool that is intended to give institutions valuable business and social information to improve outreach and service to women. Most importantly, the indicators included in this manual can provide institutions essential mechanisms to measure the achievement of mission.

Before Using this Manual: Notes on Measuring Gender Performance Collecting and tracking gender perfor-mance data cannot be implemented in isolation. A few areas need to be considered before embarking on the data collection and analysis recommend-ed in this manual.

Institutional AlignmentThe first step that an institution should take to start measuring gender perfor-mance is to ensure there is alignment across the entire organization on the integration of a gender focus. A woman- focused mission is important but not a necessary condition, and certainly only a start. The mission guides an institution and helps it set strategic priorities, but this focus must be then translated into actionable goals that can be measured. Staff at all levels of the organization must

understand the importance of measuring a focus on serving women and value the data and analysis this measurement can yield. Targets and incentives must align to this strategic priority.

Value of DataIf institutions are serious about serving women, they must collect and analyze data that supports that commitment. A database that contains accurate, accessible, and detailed information is certainly a pre-condition for using this manual. It is our hope that implementing these indicators will also drive data quality improvements. One of the most important lessons learned from this initiative has been that to measure what we value, we must also value the underlying data.1 The most important way an institution can drive improvements in data quality is by using the data. This manual presents a number of suggestions and opportuni-ties for advancing the analysis of data. One of the key considerations is to ensure that information is analyzed by client, not by product. A client-centric analysis allows institutions to thoroughly understand the performance and needs of clients because they are able to link social and demographic information to the overall financial behavior of the client, not just to a particular product.2

TrainingStaff training is another critical way to ensure the collection of quality data, particularly for field staff. Staff must understand the importance of collecting good data and its use. The value of

Developing Gender Performance Indicators. Women’s World Banking

recognizes that women should be the face of microfinance, not just in rhetoric but

in reality. Microfinance needs a universal analytic framework to measure gender

performance if the industry is to move “beyond the numbers,” to consider not only

how many women it serves, but how well and with what outcomes.

Women’s World Banking Gender Performance IndicatorsIntroduction

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robust data and analysis, and how it informs operational decision-making, must be communicated throughout the organization. An important, often over-looked, dimension of collecting accurate client data is ensuring that field staff are asking the right questions in the right ways. This is particularly important for women clients, as they are more likely to become intimidated, may have confidentiality issues due to cultural barriers, or could have lower literacy levels in general. It is key for field staff to be trained in understanding the differ-ences in roles and financial behaviors of men and women.

About this Manual The indicators of the gender performance framework outlined in this manual are organized within several areas: • Client-Centric Focus• Institutional Focus• Financial and Social Outcomes

Within each of these areas, the indicators are further grouped into categories that define the specific operational focus. The selected indicators represent what is needed to inform practitioners in the priority areas. We expect that most institutions will already be collecting the majority of the data needed to calculate these indicators however, there may be a select number of data points that are part of a poverty score or measured through other means such as surveys or market research.

Once a baseline is established for each of the indicators, the institution can monitor over time to understand changes. This analysis will enable an institution to set gender performance targets for the key departments, as well as the organization as a whole.

The gender performance indicators are, by design, highly detailed and compre-hensive. However, a key input during their design was the practicality and use for microfinance practitioners. Not every institution has the same priorities or resources. For that reason, Women’s World Banking has ranked each indicator on a scale of 1 to 5 for estimated degree of complexity.

Finally, because Women’s World Banking has coordinated closely from the beginning with the industry’s social performance community, this report flags the corresponding Social Perfor-mance Task Force (SPTF) Universal Standards for Social Performance Management (USSPM), Smart Cam-paign’s Client Protection Principles, and the Pro-Poor Seal of Excellence.

It is our hope that institutions with a mission focus or strategic objective to serve women will adopt the Gender Performance Indicators presented in this report. Only by measuring commitment to women throughout the organization will an institution be able to truly gauge whether it is meeting its mission and truly serving their women clients.

The Case for Gender DisaggregationDisaggregating data is the basis for any good analysis and allows an organization to uncover the most important trends and relationships. As an industry, we have not been tracking or analyzing a large portion of our variables by gender consistently or systematically. This is a global challenge. In fact, former U.S. Secretary of State Hillary Clinton and World Bank President Jim Yong Kim recently called for an end to the “gender data gap,” asserting that the lack of gender disaggregated data hampers development efforts in many countries. We often lack reliable and regular data on even the basic facts about the lives of women and girls—such as when they have their first child, how many hours of paid and unpaid work they do, and whether they own the land they farm.

The benefits of disaggregating data by gender are substantial. According to data published by the World Bank, 62% of projects that included substantial gender indicators delivered positive outcomes, as compared to only 30% of those projects that did not include gender indicators. In some sectors, such as in education, measuring disaggregated data by gender has become a norm and perhaps as a result, gaps in educational attainment worldwide continue to narrow.

The microfinance industry has been at the forefront of valuing and recognizing the benefits of the participation of women in the global economy. It is time that we recognize the importance of systematically disaggre-gating the data that measure these changes.

When is disaggregating by gender most helpful?Research conducted by the Pro-Poor Seal of Excellence suggests that disaggregating data by gender is relevant and useful in measuring and analyzing indicators for institutions that have either men or women clients that comprise 10% or more of their client base. For institutions that have fewer than 5% of men or women clients, it may not be a worthwhile exercise to disaggregate the data by gender.

Women’s World Banking Gender Performance IndicatorsIntroduction


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Most—but not all—microfinance providers disaggregate their client base by gender. They have basic data on how many women borrowers they serve and what percent of the total clientele that figure represents. As an industry, we know that 73 percent of our borrowers are women,3 but we do not know the number or percentage of women savers, or of women receiving other kinds of financial services.

The following indicators will help institutions build this insight. For example, how many women clients are they actually serving? What does the institution know about those clients? What external forces and ingrained assumptions shape their financial behaviors? How does the institution seek to understand its women clients’ financial needs—and to meet those needs? And just as important, do customers understand the terms of the products and how happy are they with the institution’s products and services?

5

Client-Centric Focus

cat e g o r i e s : Outreach, Products, Service Quality, Client Protection

Women’s World Banking Gender Performance Indicators

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Tips on Implementation If your institution offers products beyond credit, mea-sure outreach to all women clients, not just borrowers.

Ensure that you track and analyze data both at the cli-ent level and at the product level. Client-centric tracking facilitates client segmentation and profiling, can uncover cross-selling opportunities, and can improve client protection and social outcome measurement.4

Consider the impact of incentives for field staff, which could have unintended effects (for example, if overly aggressive goals are set for outreach to women, field staff may use women as conduits for loans to men, with the ultimate result that the institution no longer knows who is truly controlling the loan).5

Advanced IndicatorPercent women clients who are first-time borrowers of a formal financial institution. This indicator goes beyond basic outreach, and measures financial inclusion. It can be measured by checking new client records against credit bureau reports, and enables institutions to under-stand whether they are reaching the unserved or merely capturing greater share of the already-served.

Beta FindingsAt Fundación delamujer, 68% of the total client base is women. Of new clients last year, 67% are also women, suggesting a balanced approach to client growth.

Category: Outreach

Degree of Difficulty:

Links: USSPM Standard 1B3; Smart CPP1, CPP2

Primary Responsibility: Senior Leadership

Secondary Responsibility: Credit/Commercial 6

Women Clients Women clients as a percent of total clients New women clients as a percent of total new clients

Women as a percent of total clients provides a snapshot of an

organization’s outreach to women. Women as a percent of new clients

can indicate the direction in which an organization is moving.

At Fundación delamujer in Colombia, mapping women client growth by department provides a more in-depth view of uneven growth between regions.

o u t r e a c h t o wo m e n

wo m e n a s a p e rc e n t o f n e w c l i e n t s , by d e pa rt m e n t

50–55%

55–60

60–65

65–70

70–76

Women’s World Banking Gender Performance IndicatorsClient-Centric Focus

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Tips on Implementation Define the addressable market based on specific social and demographic variables such as age, income level, etc.

Use national-level census data to extrapolate address-able market and set targets for female outreach.

In most countries, the market size is difficult to gauge. Country-specific estimates and rules of thumb can be used. In some cultures, it may be difficult to accurately assess market demand due to the lack of visibility of women’s businesses. Tools such as interviews and focus groups can help uncover actual demand.

Many institutions perform market analysis when they open new branches, however it is critical to conduct this analysis on a continual basis.

Advanced IndicatorPercent growth in service points compared to growth in women clients. Analyzing the type of growth that an institution is experiencing will allow it to see whether it is expanding to new markets (extensive growth) or growing in the same areas (intensive growth).7 If this indicator is positive (i.e. extensive growth is higher than intensive growth) it can suggest that the institution has a responsible approach to growth.

Beta Findings At Fundación delamujer, the growth in service points was 21 points higher than the women client growth. This suggests a more responsible expansion approach, focusing on new markets and ensuring that the proper infrastructure exists.

Category: Outreach


Links: USSPM Standard 6A5

Primary Responsibility: Senior Management

Secondary Responsibility: Marketing

Women’s Market Penetration Women clients as a percent of addressable market

Microfinance has long assumed an unlimited market demand, but that

appears no longer to be the case, if it ever was. In order to set meaningful

growth targets, sufficiently ambitious and also realistic, an institution

needs to understand the size of the market, the share of women who are

economically active, and the nature of their economic activities.

Regional analysis at Ujjivan in India shows the institution’s market penetration (measured as number of services points) compared to the target population’s income levels. This analysis can provide guidance on whether the institution is present in the lowest- income areas. Institutions can also use this to make growth decisions.

r e a c h i n g l o w- i n co m e wo m e n

i n s t i t u t i o n a l o u t r e a c h by s tat e i n co m e l ev e l

50,000+

40–50k9–22

30–40k5–8

20–30k2–4

10–20k

p e r c a p i ta a n n ua l i n c o m e (0 0 0 s ru p e e s)s e rv i c e p o i n t s

1


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Tips on Implementation Define the competition thoughtfully. The market may contain providers without an explicit commitment to women (or the low-income market) who nevertheless have large low-income female clienteles.

Compile the best estimates possible and note the assumptions behind the estimates. Many women are customers of more than one provider, but there is no realistic way to control for overlap beyond well-informed approximations.

Mine credit bureau data if available. Most institutions use credit bureau data to rule out risky clients, but it can also provide a basis to analyze your competition and where they operate.

Estimating regional market share may also yield interesting results for institutions in large markets where national presence may be uneven.

Category: Outreach



Primary Responsibility: Marketing

Secondary Responsibility: Credit/Commercial

Women’s Market Share Women clients as a percent of total women served by comparable providers in the market

Benchmarking an institution’s share of the women’s market against the

competition’s will allow for meaningful comparison of its performance

and also suggest possible areas for improvement.

m a r k e t s h a r e wo m e n v e r s u s t o ta l

Although Fundación delamujer’s market share was 10% of the total market, it represented 15% of the women’s market, confirming a strong position as a women- focused institution.

10%

66%

41%

19%

49%

15%

s h a r e o f t o ta l m a r k e t

s h a r e o f w o m e n’s m a r k e t

p e e r g ro u p

o t h e r s

fu n dac i ó n d e l a m u j e r


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Depth of Outreach to Women Percent of women clients below a defined poverty threshold Average initial loan balance as a percent of per capita Gross National Income (GNI), by gender

Women represent the majority of the poor. If an institution has low-

income women as a target segment, this indicator will show how well

the institution is reaching them. By understanding the distribution of

the economic levels of your clientele, an institution can make strategic

decisions on product offerings, outreach and other business priorities.

Average loan balance as a percent of per capita GNI has been commonly

used by the industry as a simple and comparable proxy for measuring

depth of outreach. Disaggregating by gender can provide an additional

dimension in ensuring that the institution is reaching its target market.

Category: Outreach


Links: USSPM Standard 1B5; Seal PPP1

Primary Responsibility: Senior Management

Secondary Responsibility: Social Performance Unit Credit/Commercial

This analysis at Ujjivan revealed that a lower poverty score (indicating a low household income) was correlated with women’s greater responsibility for financially supporting the household.

b e yo n d d e p t h o f o u t r e a c h p ov e rt y l e v e l s , i n c o m e, a n d s h a r e o f h o u s e h o l d i n c o m e

<25 25–34 35–44 45–54 55–64 65–74 75+

ppi scor e

cli en t sh a r e of h h i ncom e

34%32%

31%

30%29%

28%26%

10.910.4

10.19.7

9.38.78.6

avg household i ncom e (000s r s)

Tips on Implementation Measuring poverty levels using a poverty assessment tool and disaggregate poverty scores by gender. Gender-disaggregated poverty rankings can provide even more insight on how deep and how wide that reach is.

Increasing average loan balances does not necessarily imply “mission drift,” clients may simply be growing with the institution. Therefore, analyzing the size of the initial loan a client received can provide valuable insights on the clients that are currently being served.

As an alternative, collect data on client educational attainment. It is universally understood that income, poverty and education are correlated. Highest level of completed education could serve as a proxy for poverty and may be easier data to collect on an ongoing basis.

Beta Findings Average initial loan balances, as a percent of GNI per capita, at Fundación delamujer are 6.3% for women, confirming that the institution is reaching its target clientele of poor women. Initial loan balances for women are 17% lower than men. This gap appears to narrow because women’s loan amounts tend to increase at a higher rate over time.8


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Tips on Implementation There are different methodologies to conduct market research (focus groups, interviews, client surveys, staff feedback), but results need to be systematically tracked.

It is important to get feedback from both men and women to understand their differences and similarities.

Institutions should not just conduct ad hoc market research exercises on women as endeavors separate from regular operations. Instead, all market research, regardless of methodology or intended purpose, should always include a proportional inclusion of women, and should always be analyzed by gender. Institutions should research all touch points of client experience from initial contact through loan completion to ensure products and processes are aligned with client needs.

Every marketing/market research team should use this indicator to set market research targets that are consistent with business targets, and ensure that they understand women’s needs, not only in terms of introducing new products but also making adjustments to existing products. These targets may vary year-to-year depending on product introduction plans.

Beta Findings As part of its strategic objective to increase understand-ing of clients’ needs, Fundación delamujer set a target of conducting market research with 5% of its client base each year. In 2012, they exceeded this target and consulted 7% of their target market. The research allowed the institution’s marketing department to refine and expand the development of products focusing specifically on women’s needs. Going forward, they will monitor market research outreach for both men and women clients.

Understanding Women’s Needs Percent of clients analyzed through market research, by gender

To be a genuinely client-centric organization, an institution must

directly consult its clients to identify needs. Women in particular value

being consulted.

Category: Products


Links: USSPM 4A1; Smart CPP1; Seal PPP2


Secondary Responsibility: Social Performance

t h e va lu e o f m a r k e t r e s e a rc h

Women’s World Banking and Fundación delamujer conducted interviews and focus groups with both men and women clients in rural areas of Colombia and found that differences in the economic activities and ownership of assets between men and women impacted womens’ ability to access credit. Generally, men own the land and focus on agricultural activities, while women tend to the livestock and generate income through the production of related products (milk, cheese, etc). By understanding these differences, Fundación delamujer was able to develop products tailored to women’s specific needs, including more flexible terms and collateral requirements.


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Tips on Implementation Measure uptake of discrete financial products (e.g., credit vs. savings vs. insurance) to ensure women are accessing products that meet diverse needs.

Disaggregate data between compulsory and voluntary products.

This type of analysis can also be done alongside measuring average number of products per client to give a fuller sense of product usage. However, when looking at the pure number of products, it is important to note that more products is not necessarily better for clients (for example, multiple loans may mean that the client is accessing different types of credit to meet different needs—business, education, emergency— however it could also mean that the size of the loan is not appropriate for her needs).

Beta Findings At Finance Trust, 74% of men were using two or more voluntary products versus only 55% of women. These findings led to a deeper analysis by lending methodology to better understand the effects of compulsory savings on voluntary product uptake.

Category: Products


Links: USSPM Standard 4C1; Smart CPP1



Product Diversity Percent of women clients accessing two or more distinct types of voluntary financial products

Women’s financial needs are complex, in part because of the way gender

roles are defined in society. Women need a variety of financial products

at different lifecycle milestones: childhood, education, marriage, mother-

hood, children’s needs (education, weddings), widowhood/divorce,

and retirement. Any institution focused on excellent service to women

should develop diverse products to meet those lifecycle needs.

At Fundación delamujer, analyzing the repayment performance of clients with a credit product and one or more insurance products provides insights on repayment differences between men and women. In all cases women performed better.

p ro d u c t d i v e rs i t y l oa n pe r f o r m a n c e a n d i n s u r a n c e u s ag e f e m a l e m a l e

i n s u r a n c e n o i n s u r a n c e i n s u r a n c e n o i n s u r a n c e

pa r 30 pa r 180

2.07

%

2.38

%

3.94

% 4.50

%

1.97

% 2.36

%

0.57

%

0.66

%


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Tips on Implementation Define a meaningful time horizon (e.g., one month post-launch, one four-month loan cycle) that will produce readable data.

Remember that product uptake can be affected by many factors (delivery channel, marketing, competition, seasonality, etc) but this is a critical first step in understanding the effectiveness of product design.

Advanced IndicatorPercent of rejected credit applications, by reason, by gender. Analyzing the reasons why applications are being rejected can provide greater understanding of the appropriateness of product attributes and credit requirements.

Beta Findings At Fundación delamujer, the four-year product uptake for agricultural loans was 31% for men while only 12% for women. After researching the causes for low uptake, it was determined that some of the product attributes were not responsive to women needs. Fundación delamujer is currently developing new rural products that are specifically focused on women.

Category: Products Degree of Difficulty:

Links: USSPM Standard 4C1; Smart CPP1



Product Uptake Product growth, by gender

Once an institution understands client needs, and has designed

products to meet those needs, they should measure uptake to see

whether the product is responsive to women.

At Fundación delamujer, analyzing the share of women borrowers who use key product lines across time showed differences in uptake of certain products.

pro d u c t pe r f o r m a n c e s h a r e o f wo m e n, by pro d u c t l i n e ov e r t i m e

80 %

70

60

50

40

30

20

10

0

m i c ro -e n t e r p r i s e l oa n a l l p ro d u c t s p r e m i u m l oa n ag r i c u lt u r e


2007 2008 2009 2010 2011

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Tips on Implementation There are numerous definitions of retention in the microfinance industry; Women’s World Banking uses the MIX Market definition.10 However, bear in mind that this formula provides only a snapshot of retention within a given year.

A more detailed analysis can be obtained using loan-cycle number, or if not available, the year the client joined the institution, and cross tabulating by gender and other client characteristics such as rural/urban, age, and sector.

Give thought to eventually moving beyond raw retention data and cross-tabulating it with client satisfaction data.11 Even dissatisfied clients may renew loans if there are no other options. Credit arrears can also provide insights on client satisfaction.

In retention calculations, take care with data accuracy for voluntary versus non-voluntary client attrition. Clients who were not renewed (for default or other valid reasons) should be analyzed separately as this data can provide additional results on product suitability or risk assessment.

Beta Findings At Fundación delamujer, there were consistent differences in retention rates between men and women (62% for men compared to 68% for women). We also saw that 27% of their clients had been with the institution 4 years or longer, of which 75% were women.

Category: Service Quality


Links: USSPM 4A3; Smart CPP1; Seal PPP2

Primary Responsibility: Commercial/Credit

Secondary Responsibility: Marketing

Retaining Women Clients Client retention rate, by gender Percent of women clients, by loan cycle or by join year

It is much more expensive—up to five times more, according to

Women’s World Banking’s research—to acquire a new customer than

to retain an existing one,9 and women on average tend to be more

loyal microfinance clients than men. But as an increasingly competitive

marketplace creates ever-more options, that loyalty is not something

institutions can afford to take for granted.

18 m i l l i o n c o l o m b i a n p e s o s

16

14

12

10

8

6

4

be yon d m e a s u r i n g r e t e n t i on av e r ag e a s s e t s by n u m be r o f y e a r s w i t h i n s t i t u t i on f e m a l e m a l e

At Fundación delamujer, the longer a client was with the institution, the higher her average as-sets. Although no direct attribution can be made, this analysis can be a starting point to explore indications of social outcomes. On average, women clients that had been with the institution longer registered higher assets.

1 2 3 4 5 6 7 8 9 10 11 y e a r s


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Tips on Implementation Conduct customer satisfaction surveys on a routine basis, not just in response to a crisis or to support planned expansion. This not only gives ongoing insight into customer needs and preferences, but also ensures comparability of datasets across time for purposes of trend analysis.

Limit the distinct categories within your survey answers and keep the total number of questions to the minimum necessary to yield meaningful data and ensure actionable results.

Disaggregate survey results by gender, branches, service points, and other key variables to understand the drivers of good (and bad) service.

Take visible action in response to client feedback and communicate those actions to show customers that you have heard them.

Beta Findings Fundación delamujer disaggregated their client satisfac-tion ratings and found that overall women were slightly more satisfied with the institution than men (4.65 versus 4.59 out of 5). Although no significant differences were found between men and women, these ratios are continuously monitored.

Category: Service Quality


Links: USSPM Standard 4A2; Smart CPP1, CPP7; Seal PPP2



Client satisfaction Client satisfaction score, by gender

Men and women measure and value service quality differently, and it is

important to capture this feedback. Men tend to be more transactional

and to value efficiency and price. Women place greater importance

on the relationship, and they value familiarity, basing decisions on their

own past experiences (positive or negative) and on input from others.

Only by understanding gender-specific drivers of customer satisfaction

and dissatisfaction can an institution identify areas for improvement

in service to women.

u s i n g c l i e n t sat i s fa c t i o n s u rv e ys t o i m p rov e s e rv i c e

Fundación delamujer’s client satisfaction surveys revealed that one of the drivers of satisfaction was convenience; yet banking correspondents were not being fully utilized. Additional client surveys revealed that clients were skeptical of making loan payments at these service points as they were perceived as unsecure, in part because the payment receipts did not include the institution’s logo. Fundación delamujer printed new receipts with their logo and developed marketing campaigns that focused on the safety of making payments through correspondents. In one year the volume of payments transacted through correspondents increased by more than 80%.


15

Tips on Implementation The feedback mechanism should allow for anonymity or confidentiality, which is especially important for women.

Provide staff training. Such training should cover codes of conduct, grievance mechanisms, and client relation-ship-management. Most importantly, training should position client feedback as an opportunity for staff to improve service rather than as something threatening.

Provide field staff with incentives to encourage client feedback. Incentives can take the form of public recognition or spot bonuses based on the number of clients who provide feedback.

Do not take a low percentage of complaints at face value. This may simply mean that customers do not know their options or do not trust the complaints system. This is particularly true in low-competition environments: a client with no other options will not complain even about very bad service if she fears loss of access.

Beta Findings At Ujjivan, 0.4% of clients had submitted a formal complaint or inquiry. Within 6 months of giving custom-ers cards which outlined complaint resolution proce-dures, Ujjivan saw an 88% increase in customer inquiries and complaints.

Category: Client Protection


Links: USSPM Standard 2D4; Smart CPP1, CPP5;Seal PPP2



Women’s Feedback Percent of clients with inquiries or complaints, by gender

Women tend not to voice concerns (at least publicly) and may not feel

comfortable asking questions. At the same time, women tend to

informally communicate negative perceptions; by some estimates, they

are four times more likely than men to complain to others if they

have a bad customer service experience. So it is in an institution’s best

interest to ensure all clients have access to feedback mechanisms,

to proactively encourage women clients to use those mechanisms, and

to respond to complaints.

t y p e s o f i n q u i r i e s i n q u i ry c h a n n e l s

Beyond the number of complaints, Fundación delamujer began to track the types of inquiries as well as the channel through which they were received. This enabled them to measure and set target response time per type of inquiry.

1%

t e l e p h o n e

s u g g e s t i o n b ox

e m a i l

l e t t e r

c l a i m

c o m p l a i n t

p o s i t i v e f e e d b ac k

i n q u i ry

49%

67%

9%

44%

6%


16

Tips on Implementation Although this indicator measures formal financial educa-tion programs, financial education should be incorpo-rated into materials field staff use, in a variety of formats (for example messaging, videos, printed marketing collateral).

Track clients who are receiving formalized financial education within the Management Information System (MIS). You can then cross-analyze this information with other financial and social variables (e.g., portfolio at risk, retention) which will enable you to measure program effectiveness.

It is also important to capture feedback on the quality of the programs (through evaluations or questionnaires, for instance) as well as any product uptake as a result of the program.

Beta Findings At Ujjivan, 7% of clients had attended formal financial literacy programs. Ujjivan also provides training on financial literacy and understanding of pricing, terms and conditions prior to loan disbursement.

Category: Client Protection


Links: USSPM 4C2, Smart CPP3

Primary Responsibility: Social Performance


Educating Women Percent of women clients who attend financial education programs

Women generally have lower literacy levels relative to men, and they

are less confident asking questions or demanding clarification. This

means women may be less likely to understand product terms and

conditions. Institutions that take measures to protect clients through

financial education programs are providing more comprehensive

services to women improving access and increasing product uptake.

m e a s u r i n g t h e e f f e c t i v e n e s s o f f i n a n c i a l e d u cat i o n p ro g r a m s

Ujjivan worked with its sister foundation, Parinaam, to create the “Diksha” Financial Literacy Program, a five-mod-ule, in-depth classroom training. The program includes lessons on simple numerical skills; maintaining financial records of income and expenditure; understanding the importance of savings and how to borrow within capacity to repay. The program includes a savings initiative in which Ujjivan helps women open savings accounts with partner banks. To measure the effectiveness of the program, Parinaam is tracking the number of women who open savings accounts after attending. Currently, 31,200 clients have completed the Diksha training, of which 25.1% have opened savings accounts. As Ujjivan is starting to capture participation in their MIS, they will be able to track not only financial inclusion, but other financial and social outcomes from the program.



1717

Institutional Focus

To be the best place for women customers, a microfinance institution should be the best place for women employees and women leaders. A substantial body of research consistently finds a strong correlation between gender diversity and superior financial performance across a variety of industries. Research published by Catalyst shows that companies with the highest gender diversity in senior management achieved higher Return on Equity and shareholder returns.12 The challenge is that as the microfinance industry has commercialized, fewer women have, or are perceived to have,

the technical and leadership skills demanded by the mainstream financial services sector. Women’s World Banking has published extensively about this phenomenon and has committed to changing the dynamic as part of the Center for Microfinance Leadership.

Businesses thrive when they maximize the potential of their people. Women deserve a workplace that takes their circumstances into account and allows them to flourish. Institutions deserve the strongest workforce possible: you can’t win the game using just half the talent.


cat e g o r i e s : Institutional Composition, Institutional Trends

18

Tips on Implementation Review diversity levels regularly. Look at the breakdown by region and by level (governance, executive leader-ship, management staff with profit-and-loss responsibil-ity, non-line managers, staff) and use this information to spot gaps and address as appropriate.

Decide your optimal degree of gender diversity. Diversity is just that—the goal need not be 100% women staff. You should strive to mirror your market, actual or desired, or benchmark against the industry.

Many human resource departments track staff data in a stand-alone system, separate from the MIS used by operations. It is important to integrate the two systems to allow for productivity analyses (e.g., ratios of clients to loan officers for men versus women officers) and trend analyses.

Beta Findings At Finance Trust, there are strong diversity ratios: 54% of staff, 62% of front-line staff, 43% of middle managers, and 56% of senior managers are women.

Category: Institutional Composition



Primary Responsibility: Human Resources

Secondary Responsibility: Senior Management

Board/staff diversity Percent women board members, staff, senior management, middle management, and front-line staff

Diversity is often correlated with profitability, efficiency, and innova-

tion. Women’s success in the workplace, in particular, is shaped by an

array of factors including cultural expectations, family responsibilities,

and self-perception. To build the most effective and diverse leadership

and staff, an institution must develop women’s skills in ways which

take their circumstances into account. To do this requires a baseline of

the existing diversity at the institution.

i n s t i t u t i o n a l d i v e rs i t y co m pa r e d t o n at i o n a l a n d r e g i o n a l t r e n d s

Benchmarking diver-sity ratios to market or regional peer groups can provide valuable insights.

f u n dación del a m u j er c o l o m b i a p e e r s l at i n a m e r i c a & c a r i b b e a n

f e m a l e b oa r d m e m b e r s f e m a l e m a n ag e r s f e m a l e s ta f f f e m a l e l oa n o f f i c e r s

71%

41%

30%

50%

45%

39%

65%

64%

52% 53

%

54%

43%

Women’s World Banking Gender Performance IndicatorsInstitutional Focus

19

Tips on Implementation Make sure the institution’s diversity indicators include voluntary and involuntary attrition rates. If the data indicates a large disparity between men and women, set about devising corrective measures.

Track promotions by gender between levels, to understand differences in men and women’s career moves within the institution. For example, men could be moving up the career ladder while women are making more lateral moves.

Strive continually to distinguish between perception and reality about women’s circumstances. For example, in many markets there is a widespread perception that women do not want to travel or relocate, and that this reluctance is a defining constraint to promotions. It is important to verify such assumptions; there is no substitute for simply asking.

Conduct regular surveys to uncover employee goals and satisfaction levels. Data from these surveys should be analyzed by gender to identify and address barriers to advancement.

Flexible working hours, childcare options, chaperones/bodyguards for travel, and other women-friendly policies can be a good way to attract and retain women.

Encourage women employees especially to take advantage of training. All employees should have equal access to training as a matter of course. But women in many labor markets enter the workforce with fewer technical and leadership skills, and may be reluctant to take time away from their everyday duties to take advantage of training.

Track compensation by gender and address any gender-biased disparities in remuneration, other factors (education, years of experience) being equal.

Category: Institutional Trends



Primary Responsibility: Human Resources


Advancing Women Managers Staff promotion and attrition rates, by gender

As institutions grow and commercialize, fewer women can be promoted

to senior management positions. Gender biases may influence promotion

decisions, but women staff may also leave the workforce due to a lack of

flexibility in human resource policies. Conversely, when workplace condi-

tions accommodate women’s needs and they are satisfied with their jobs,

women often exhibit lower attrition and higher productivity.

b e yo n d at t r i t i o n: p ro d u c t i v i t y a n d g e n d e r

f i e l d s ta f f by g e n d e r, by y e a rs i n i n s t i t u t i o n

By disaggregating loan officer data by gender, differ-ences in productivity levels at Fundación delamujer emerged. Further analyzing loan officers by the number of years on the job demonstrated that because female loan officers had on average been at the institution longe they also exhibited higher levels of productivity.

45%

42%

7%

5%

7%

7%

9%

43%

33%

f e m a l e l oa n o f f i c e r s

m a l e l oa n o f f i c e r s

3%

5+ y e a r s

4 y e a r s

3 y e a r s

2 y e a r s

1 y e a r

Beta Findings At Fundación delamujer, women’s voluntary attrition rates were 10 points lower than men’s (18% versus 28%).

Women’s World Banking Gender Performance IndicatorsInstitutional Focus

Outcomes

20

The microfinance industry was founded on certain assumptions: that women are better credit risks than men, that they need smaller loans that targeting them results in higher profitability, and that they are more likely than men to use any increased income for expenditures and investments associated with poverty reduction (e.g., better nutrition, health-care, housing improvements, children’s education). Research confirms some of these assumptions. For example, a 2010 study of 350 microfinance institutions in 70 countries found that a higher percentage of female clients was associated with lower portfolio risk, fewer write-offs, and fewer provisions, all else being held equal.13

The preceding sections of this manual have focused on the steps that can lead to serving women well. This section now turns to the outcomes, both financial and social. These indicators provide tools to test assumptions and

monitor for changes across time. But they also go beyond those assumptions to try to understand the deeper dynam-ics. Why are women receiving smaller loan sizes? How consistent are repay-ment rate differences? If women are in fact better repayers, is this necessarily cause for celebration, or could it be because women might choose to work in lower-risk economic activities?

The indicators in the Social Outcome category also measure changes in well-being that could result from, or be influenced by, financial services. Management should therefore weigh the cost of collecting and analyzing more information with the benefit of making better decisions. Management can also consider working with third-party researchers to carry out impact studies on specific areas.

To develop the Social Outcome indica-tors, Women’s World Banking tested a large number of indicators based on their operational and scientific reliability. Those were narrowed to a smaller set of what we believe to be the most useful indicators based on our knowledge of women’s priorities as well as the indicators’ practical ability to be imple-mented on the ground.

The Social Outcome indicators an institution chooses to incorporate into its monitoring and evaluation activities will naturally vary according to that institu-tion’s objectives. We have found that these areas can be classified into three general categories where women are consistently more likely to experience measurable changes broadly attributable to microfinance interventions: economic improvement, self-determination and family well-being.


cat e g o r i e s : Financial Outcomes, Social Outcomes

21

Category: Financial Outcomes


Links: USSPM 1B3, 4B3;Smart CPP2

Primary Responsibility: Credit/Commercial

Secondary Responsibility: Strategy

Women as an Asset Base Percent of loan portfolio and average loan balance by gender

For most microfinance institutions, the loan portfolio is the largest

asset, so it is important to understand who holds the loans. The most

basic analysis is to disaggregate by gender. It is also important to analyze

differences in average loan balance to truly understand which clients

are impacting the risk levels of your loan portfolio.

Tips on Implementation Ensure the distribution of your loan portfolio is balanced. If the majority of your clients are women, total portfolio held by women should reflect this balance.

Take regional differences into account as this is often a significant variable. For example, within the same country, rural communities are often poorer than more urbanized areas, and women tend to be the most affected. Disaggregate portfolio and loan size for rural and urban clients and by gender.

Analyze average loan size by cycle or join year to see women’s advancement with the institution over time.

Explaining differences in average loan sizes can be complex. For instance, if your women borrowers, especially new customers, have lower loan sizes, it may reflect the fact that women tend to start out with lower income and fewer assets. Conversely, if a large portion of your women clientele exhibit larger loan sizes, this may be because they have grown with the institution and can be confirmed by analyzing by loan cycle or year of entry.

Beta Findings At Fundación delamujer, on average male clients receive loans that are 10% higher than women clients. When looking at the data more closely, we saw that women tend to have lower incomes and assets, yet loan sizes represent a higher proportion of their asset bases than men. At the same time, women had consistently lower PAR levels, suggesting that they are better money managers and substantiating the notion that women are better repayers.

r e g i o n a l a n a lys i s :

wo m e n’s p o rt f o l i o co m p o s i t i o n

p e rc e n t wo m e n p o rt f o l i o

co m pa r e d t o p e rc e n t wo m e n c l i e n t s

At Finance Trust in Uganda, we performed regional analysis that compares women’s loan portfolio to the percentage of women clients. If men and women had equal average loan balances we would see parity (100 % in this scale). This analysis can then be refined by product and by branch to evaluate target markets.

90–110

80–90

70–80

60–70

50–60%

Women’s World Banking Gender Performance IndicatorsOutcomes

22

Tips on Implementation In addition to gender, segment data by sector. Part of the reason women make less risky customers is because they themselves are more risk-averse and thus more likely to engage in low-risk (albeit low-return) enterprises.

Segment portfolio-at-risk by severity beyond 30 days (60 days, 90 days, 180 days) and by gender to get a more precise read on which clients are contributing to portfolio at risk.

Perform similar disaggregation by loan product type and size.

Beta Findings At Finance Trust, women exhibited lower PAR levels than men at all loan sizes (from 0.7% to 2.5%), with the exception of the largest loans, where women exhibited higher PAR than men. Although relatively few women clients held these large commercial loans, they distorted the overall PAR numbers due to the large size of the loans (on average 50 times the size of Finance Trust’s smallest loans).

Category: Financial Outcomes


Links: Smart CPP2

Primary Responsibility: Risk


Women’s Repayment Capacity Portfolio at Risk > 30 days, by gender

Gender has long been one of the most important variables to measure

financial risk because women have proven to be reliable repayers. It is

important to look at PAR by this key differentiator in order to fully

understand all the drivers of risk.

3%

2

0

pa r 30 pa r 60 pa r 90 pa r 120 pa r 180

r e pay m e n t p e r f o r m a n c e, p o rt f o l i o a g i n g, by g e n d e r fem a le m a le

A portfolio aging analy-sis provides a more in-depth view of repayment behavior. At Fundación delamujer, there are consistent repayment rate differences between men and women; however, as delinquency increases, differences tend to taper off. In this case, women are better repayers as a whole but are just as likely to be written off as men.

3.2%

2.6%

0.7%


23

Tips on Implementation As a first step, perform a static analysis on income and assets by gender to get a sense of the disparities. Continue to generate this data on a client-by-client basis at regular intervals to measure change.

Track both business- and household-level changes. Many institutions track one or the other, but in reality these are often interwoven and usually have implica-tions for empowerment. For example, a woman may prepare food at home to feed her family but also sell a portion of it. Because that income originates at the household level, vit may remain invisible (to the woman herself and her family) absent deliberate effort to see and count it.

Pay attention to gendered patterns in economic growth. For example, Women’s World Banking has found that rather than reinvesting into an existing business, a woman entrepreneur will often diversify into an entirely new one. It may appear that her business growth is flat when in fact, she is pursuing diversification as a risk-management strategy.

Be mindful of the pros and cons of tracking incomes versus assets. Income calculations—especially in group lending methodology—are vulnerable to loan officer bias and limited experience conducting the kind of thorough due diligence needed to capture the full picture. Assets may yield a more accurate baseline read of client well-being however values may vary based on methodology. In addition, asset change occurs over a longer time-horizon.

Beta Findings The average Ujjivan client has a monthly household income of 9,500 rupees and owns 2.8 key household assets (including refrigerators, furniture, and cooking stoves). There was a correlation between poverty levels, household income, and the number of assets recorded demonstrating that all can be used as proxies for economic well-being. Ujjivan will be looking at key household assets over time to measure outcomes for clients.

Category: Social Outcomes


Links: USSPM Standard 1A3, 1A4, 1A5, 1B8; Seal PPP3



Economic Improvement Average percent change in net business income or assets and/or average percent change in household income or assets, by gender

Access to financial services can result in economic gains that allow a

woman to make increased, and more visible, economic contributions,

enhancing her status and related negotiating power as a provider

in the household.

d i sa g g r e g at i n g c l i e n t i n co m e a n d a s s e t s , by g e n d e r a n d ru r a l/u r ba n i n m i l l i o n s o f co l o m b i a n p e s o s

At Fundación delamujer, analyzing assets and income data by gender and location can reveal insights on the differences in asset accumula-tion and income generation between men and women in rural and urban areas.

av e r ag e a s s e t s av e r ag e i n c o m e

m e n w o m e n m e n w o m e n

ru r a l u r b a n

7.05

3.51

9.68

3.25

9.13

5.29


14.2

4

4.25

24

Tips on Implementation First do no harm. The woman-as-client-in-name-only phenomenon leaves her more vulnerable, not more empowered, because she is contractually obligated to repay a loan she does not in reality control. Institutions should avoid setting overly aggressive targets for outreach to women if those targets risk tempting staff to knowingly sign up women clients as pass-throughs.

Train loan officers to ask about loan purpose in a neutral, non-leading way. Accurate information about loan purpose can be difficult to obtain not only because clients can condition their responses based on what they believe the person wants to hear, but also because money by its nature is fungible. Loan officers know their clients best and can be coached in how to elicit the most accurate and truthful answers.

Understanding accurate loan utilization is also good business practice. Tracking the predominant loan purpose can enable institutions to better tailor product terms, find opportunities for new products, or cross- sell existing products.

Beta Findings By mining data on loan purpose, it was estimated that 72% of Ujjivan women clients used loans for their own income-generating activity. While not a perfect measure, Ujjivan collects this information in an unusually un-biased manner by ensuring that no incentives or credit decisions are made to encourage clients or loan officers to report self utilization of loans.



Links: USSPM Standard 1A3, 1A4, 1A5; Smart CPP2; Seal PPP3

Primary Responsibility: Credit/Commercial

Secondary Responsibility: Social Performance

Self-Determination Percent of women who use their loan for their own economic activity

No institution can serve its clients well without first knowing who is

actually using the product. It is important for institutions to monitor

whether its women clients control the loans taken out under their

names or whether they are handing over the loans to a husband or

other family member.

l o a n u t i l i z at i o n t r a c k i n g l o a n p u r p o s e a n d u sa g e

At Ujjivan, women that reported using the loan for themselves used it for business purposes; however, of the 25.6% of loans that were used for non-business purposes, the major-ity were passed on to family members.

71.6% 25.6% 19.4% 6.2%

2.5%

0.4%

s e l f

s p o u s e

s o n

n o n-b u s i n e s s u s e

fa m i ly

s e l f

b u s i n e s s u s e n o n-b u s i n e s s u s e


25

Tips on Implementation Modify client intake paperwork to include fields that capture information on housing and children’s educa-tion to create a baseline.

Housing conditions vary substantially between different contexts. In certain countries, it may make sense to track the construction materials, in others, the type of ownership.

Collecting this additional information can be time consuming. Reward front-line staff for accurate data capture on these indicators.

Provide basic training to ensure staff ask questions in a non-leading, unbiased, and gender-conscious manner.

Beta Findings Ujjivan collects data on the age and education of their clients’ children, and determined that 27% of their clients with children aged 9 to 15 had at least one child out of school. This information is being tracked over time and could enable Ujjivan to measure family well-being as well as create education-related products and services. Ujjivan also tracks the housing conditions and estimated that 34% of their clients had a reinforced concrete roof, compared to other less durable materials (thatched, stone tiled, and cement sheet) and more than 80% have access to toilet facilities. Preliminary analysis showed that 18% of clients improved their roof, their toilet, or both during a one year period. Ujjivan will continue to track these variables over time.



Links: USSPM Standard 1A3, 1A4, 1A5, 1B8; Seal PPP3



Family Well-Being Percent of women clients with school-aged children in school Percent women clients that show improvement in housing conditions

Research has found that women are more likely than men to invest

increased income in family well-being. Women place a high priority on

improved living conditions, as well as children’s education—the single

biggest determinant to breaking inter-generational poverty.

l o a n p u r p o s e (e xc lu d i n g i n co m e g e n e r at i o n) by l o a n cyc l e

At Ujjivan, analyzing loan usage by cycle showed that over time women clients shifted loan usage from busi-ness to family: housing and education were the most important priorities.

f i r s t c yc l e s e c o n d c yc l e t h i r d c yc l e f o u r t h c yc l e f i f t h c yc l e

12 %

10

8

6

4

2

0

h o u s i n g e d u c at i o n m e d i c a l m a r r i ag e wat e r p u r i f i e r


26

Moving Forward

These indicators provide a way for microfinance institutions to measure gender performance. We hope that institutions will use these indicators and analysis to build a robust understanding of how well they are serving women, and how these women clients contribute to the financial goals and social mission of the organization. How-ever, the Gender Performance Initiative does not end here. Women’s World Banking is eager for the GPI to contribute more directly to tracking how well products beyond credit, particularly savings, are serving the needs of low-income women.

26 Women’s World Banking Gender Performance Indicators


27

Appendices & Endnotes

27 Women’s World Banking Gender Performance Indicators

28

Area Category Definition Formula USSPM Smart Principles

SEAL Principles

Client- Centric

Outreach Women clients as percent of total clients Number women clients/Number total clients Standard 1B3 CPP1/CPP2

Outreach New women clients as percent of total new clients Number new women clients/Number total new clients for the period

Standard 1B3 CPP1/CPP2

Outreach Women clients as a percent of addressable market

Number women clients Estimated female microenterprise market (or country’s economically active female population)

Standard 6A5

Outreach Women clients as a percent of total women served by comparable providers in the market

Number women clients /Number total microfi-nance women clients in market (country/region)

Standard 6A1

Outreach Percent of women clients below the poverty threshold

Number women clients under the targeted poverty threshold (PPI/poverty line)/Number total women clients

Standard 1B5 PPP1

Outreach Average initial loan balance as a percent of per capita Gross National Income (GNI), by gender

Average initial loan balance for women (men) borrowers per capita GNI

Standard 1B5

Products Percent of clients analyzed through market research, by gender

Number women (men) clients analyzed through market research/Number total clients

Standard 4A1 CPP1

Products Percent of women accessing two or more voluntary distinct type of voluntary financial products

Number women clients accessing two or more products/Number total women clients

Standard 4C1 CPP1

Products Product growth, by gender Number new women (men) clients accessing a specific product over time period/Number total women (men) clients accessing Product at begin-ning of time period

Standard 4A1 CPP1

Service Quality

Client retention rate, by gender Number active women clients at the end of the pe-riod/(Active women clients at the beginning of the period + new women clients during the period)

Standard 4A3 CPP1 PPP2

Service Quality

Share of active women clients by loan cycles Share of active women clients by join-year

- Number women clients who are in a given loan cycle/Number total women clients - Number women clients who joined in a given year/Number total women clients

Standard 4A3

Service Quality

Client satisfaction score, by gender Average satisfaction survey score for women (men) clients

Standard 4A2 CPP1/CPP7

PPP2

Client Protection

Percent of clients with inquiries/complaints, by gender

Number women (men) clients with inquiries or complaints/Number total clients

Standard 2D4 CPP1/CPP5

PPP2

Client Protection

Percent of women clients who attend financial education programs

Number women clients that attended financial education programs in the year/Number total women clients

Standard 4C2 CPP3

Institutional- Focus

Institutional Percent women board members Number women board members/Number total board members

Standard 5A7

Institutional Percent women staff Number women staff/Number total staff Standard 5A7

Institutional Percent women middle managers Number women middle-managers/Number total middle managers

Standard 5A7

Institutional Percent women senior managers Number women senior managers/Number total senior managers

Standard 5A7

Institutional Percent women front-line staff Number women front-line staff/Number total front-line staff

Standard 5A7

Institutional Voluntary staff attrition rate, by gender Number women (men) voluntarily leaving institu-tion/Number total women (men) staff

Standards 5B6/5C2/5C4

Institutional Promotion rates, by gender Number women (men) promoted/Number total women (men) staff

Standards 5B6/5C2/5C4

Financial and Social Outcomes

Financial Outcomes

Percent of loan portfolio, by gender Women’s (men’s) Gross Loan Portfolio/ Total portfolio

Standards 1B3/4B3

Financial Outcomes

Average loan balance, by gender Women’s (men’s) Gross loan portfolio/Number women (men) borrowers

Standards 1B3/4B3 CPP2

Financial Outcomes

Portfolio at risk > 30 days, by gender Outstanding balance of portfolio overdue for women (men) for more than 30 days /Gross loan portfolio for women (men) clients

CPP2

Social Outcomes

Average percent change in net business income or assets by gender and/or average percent change in household income or assets, by gender

(Average women (men) income in given year)/Average women (men) income in prior year

Standards 1A3/1A4/1A5/1B8

PPP3

Social Outcomes

Percent of women who use their loan for their own economic activity

Number women who obtain a loan and state that they will use it in their own business/Number total women clients

Standards 1A3/1A4/1A5 CPP2 PPP3

Social Outcomes

Percent of women clients with school-aged children whose children are enrolled in school

Number women clients with school-aged children who state that all children are in school/Number total women clients with school-aged children

Standard 1A3/1A4, 1A5/1B8

PPP3

Social Outcomes

Percent women clients that show improvement in housing conditions

Number women clients with improvement in household conditions metric (roof, floor, toilet, etc.)/Number total women clients

Standard 1A3/1A4, 1A5/1B8

PPP3

Appendix A

Women’s World Banking Gender Performance IndicatorsAppendices & Endnotes

29

Appendix B

a b o u t t h e i m pl e m e n t i n g pa rt n e r s

f i n a n c e t ru s t

Finance Trust Ltd was founded in 1984 to provide customized financial services to low- and medium-income people especially women. The company is licensed and regulated by Bank of Uganda as a Micro Deposit Taking Institution (MDI) and is recognized as a key player and part of Uganda’s formal financial sector. The company has one of the largest branch networks in Uganda with 30 interconnected branches strategically positioned all over the country and serves over 150,000 customers with a variety of savings and loan solutions including business loans, salary loans, school fees loans, savings accounts, fixed deposits and money transfers services.

f u n dac i ón d e l a m u j e r

Fundación delamujer was founded in 1986, with a mission to contribute to the economic and social development and well-being of low-income entrepreneurial women and their families by offering responsible financial products and services. Fundación delamujer has 220 offices and 306 banking correspon-dents. Fundación delamujer is rated 4 diamonds by MIX Market due to the transparency, quality and reliability of its data. Fundación delamujer has also received numerous recognitions:

• Among the most admired institutions in Colombia by DATEXCO in 2011,

• Fourth place among the best Microfinance Institutions by Forbes Magazine in 2007,

• Best Institution in supporting the activities of Colombian entrepreneurs by Bancoldex 2007,

• Excellence Award in Microfinance for non-reg-ulated institutions by the Inter-American Development Bank in 2005, and

• Award to Financial Transparency by CGAP in 2006

u j j i va n

Ujjivan was established in 2005 to serve the economically active poor in urban and semi-urban areas with headquarters in Bangalore, and regional offices in New Delhi, Kolkata and Pune. Ujjivan has 299 branches in twenty states, including 48 under-banked districts across India. It provides a range of credit products and services to cover custom-ers’ needs as well as insurance. Ujjivan received a 5 Diamond rating from MIX Market in 2010. In addition it was awarded

• Ujjivan won the Srijan MFI transparency award for established MFIs,

• 14th among India’s Best Companies to Work for and ranked #1 in microfinance Industry in May 2011,

• MFI of the Year 2011 (Large Organizations) at the Access Microfinance India Summit in Delhi,

• platinum Award in SPM reporting by MIX Market, and

• in January 2013, Ujjivan was certified by the Smart Campaign for the implementation of the Client Protection Principles.


30

Appendix C

wo m e n’s wo r l d ba n k i n g r e s o u rc e s

g e n d e r pe r f o r m a n c e

• Women’s World Banking Gender Performance Initiative Webpage: Tools and resources for implementing the gender performance indicators. bit.ly/genderperformance

• Organizational Gender Assessment Toolkit: Self-assessment of MFI recruitment, retention and promotion of women staff.

bit.ly/GPI-OGA• What if it Had Been Lehman Brothers &

Sisters?: The Importance of Building Gender Diverse Microfinance Institutions.

bit.ly/GPI-lehman-brothers-sisters

data a n a ly t i c s

• Garbage In, Garbage Out? Data Quality in the Microfinance Sector: Challenges of data quality in the microfinance sector, and potential solutions.

bit.ly/data-quality• Portfolio Analytics Toolkit: Theoretical

background on data analysis and basic statistical concepts, as well as a step-by-step process for preparing for and conducting a basic and detailed portfolio analysis.

bit.ly/GPI-portfolio-analytics

m a r k e t i n g

• Marketing for Microfinance: Reference guide for microfinance organizations seeking to develop their marketing capabilities.

bit.ly/GPI-marketing-microfinance

pro d u c t d e s i gn & d i v e r s i t y

• Banking on Youth—A Guide to Developing Innovative Youth Savings Programs: bit.ly/GPI-banking-youth

• Microfund for Women’s Caregiver Experience: Lessons from Jordan on Health Microinsurance.

bit.ly/GPI-microinsurance

i n d u s t ry r e s o u rc e s

• Grameen Foundation Progress out of Poverty Index (PPI)

www.progressoutofpoverty.org• Microfinance Information eXchange www.themix.org• MFTransparency www.mftransparency.org• Pro-Poor Seal of Excellence

www.sealofexcellence.wordpress.com• The Smart Campaign www.smartcampaign.org• Social Performance Task Force www.sptf.info• USAID Poverty Assessment Tools www.povertytools.org


31

Endnotes

pag e 3

1 For additional information on data quality challenges and potential solutions, see Women’s World Banking publication “Garbage In, Garbage Out? Data Quality in the Microfinance Sector.”

2 See Women’s World Banking’s Portfolio Analytics Toolkit for additional information on conducting client-centric analyses.

pag e 5

3 Based on 2011 data of all MFIs reporting to the MIX Market.

pag e 6

4 See Women’s World Banking publication “Garbage In, Garbage Out? Data Quality in the Microfinance Sector” or Portfolio Analytics Toolkit for further information on client-centric systems and analysis.

5 For additional information see Social Outcome indicators.

6 “Credit/Commercial,” also known in some institutions as “Operations” or “Programs,” is the division responsible for initiating and managing the institution’s core products (usually the loan portfolio, and in many cases savings and/or insurance).

pag e 7

7 For additional information on intensive versus extensive growth, see “Defining Responsible Financial Performance: How to Think about Growth,” Adrian Gonzalez.

pag e 9

8 See page 21 for additional findings on this analysis.

pag e 13

9 Marketing for Microfinance, Women’s World Banking.10 The MIX formula is Client retention rate = Active

borrowers at the end of the period/(active borrowers at the beginning of the period + new borrowers during the period). See also Schreiner formula in

“The Challenges of Measuring Client Retention,” Chuck Waterfield.

11 For additional information, see Client Satisfaction on page 14.

pag e 17

12 “Connecting Corporate Performance and Gender Diversity,” Catalyst.

pag e 20

13 Women and Repayment in Microfinance: A Global Analysis; Bert D’espallier, Isabelle Guerin, Roy Mersland.


32

Acknowledgments

Women’s World Banking would like to thank the many individuals and organizations whose support made this publication possible. A very special thank you to the Women’s World Bank-ing staff and consultants who contributed: Celina Kawas, Rebecca Ruf, Jaclyn Berfond, Elizabeth Lynch, Julie Slama, Karen Miller, and consultants Anne Folan, Ken Liffiton, Mark Schreiner, Mona Selim, Hugh Sinclair, and Daniel Rozas.

We would also like to thank the microfinance institutions who so graciously hosted Wom-en’s World Banking staff and gave their time and energy to this initiative: Finance Trust, Fundación delamujer and Ujjivan. We would like to specifically thank the members of the Operational and Investor Advisory Groups, who lent their time and expertise to this excit-ing initiative:

Ben Leussink, Hivos, the Netherlands Carolina Benavides, Mibanco, Peru CJ Juhasz, WWB Asset Management, USA Dina Quonqur,

Microfund for Women, Jordan Frances Sinha, EDA Rural Systems, India Jody Rasch, Moody’s, USA Juan Manuel Grau,

Fundación delamujer, Colombia Kate Holloway, Westpac, Australia Kate McKee, CGAP, USA Micol Pistelli, Microfinance

Information Exchange, USA Kathleen McQuiggan, PaxWorld, USA Safiye Ozuygun, Citi, UK Sandra Darville,

Inter-American Development Bank, USA Sascha Noé, Cordaid, the Netherlands Shazreh Hussain, Gender Expert, Pakistan

We are incredibly grateful for the support of our funders—Citi, Cordaid, Hivos, Icco, the Multilateral Investment Fund, and Moody’s—who have enabled Women’s World Banking to take this next step forward in defining gender performance for microfinance.


wo m e n’s wo r l d ba n k i n g, 2013

Documents

Gender Performance Indicators: How well are we serving women?